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Earn-Out
(redirected from Earn out)

   Also found in: Legal, Wikipedia 0.01 sec.
Earn-out
Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement.

Earn-Out
In an acquisition, an additional payment made to the acquired company's former owner(s) in the event that certain earnings are met. For example, a company may acquire another for $75 million, with an additional $10 million in cash and/or stock if the acquired company's earnings outperform expectations by a certain percentage. Earn-outs are based on the acquired company's potential future earnings.


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New York, NY 5/9/08 -- Enzo Biochem has acquired BIOMOL International for $15 million in cash, $3 million in unregistered stock, and earn outs over two year.
The Board of Directors has decided to be even more flexible and open, in consideration of the realities of the financial markets, to a wider array of offers, including joint ventures, earn outs, mergers and reverse mergers.
The consideration for this acquisition will be paid partly in cash and partly by way of future cash earn outs.
 
 
 
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